What are the seven things
that rich people buy that poor and middle class don't?
You see one of the things
that differentiates the rich from the poor
is not just because of money,
it's because they have assets.
Rich people, they buy and they own and they acquire assets.
Middle class, they buy liabilities thinking they're assets
and poor people, they only have expenses.
Today I'm gonna share with you seven types of assets
that rich people buy, acquire and own.
And I'm not gonna define assets
as in traditional accounting terms.
When you talked in accounting
and they were explained to you
what types of asset classes there are,
I'm gonna define it the way that rich people,
the way that we see assets
and are very, very different how most people see it.
By the way, if you have not ordered a copy
of my new book, Unlock It,
make sure and click the link somewhere here
and order a new book where I go much more in depth,
how do you unlock your financial confidence
and how do you acquire wealth.
Number one, the first type of asset that rich people have
that the poor don't is business.
See most rich people, almost all of them,
either they make their money
through their companies and business
or they have an invested interest
in multiple companies or multiple businesses.
So once you think about it versus poor people,
all they have is a job.
They have a paycheck at the end of the month.
You'll never get rich through a paycheck.
You'll only get rich through a business
or multiple businesses.
Why?
Because it's the only way you can apply leverage.
You can leverage other people's time,
money, resources and talents to build something,
to make your vision a reality.
That your earning ability
is not tied to how many hours that you work.
You are able to leverage one to 10 and one to 100,
one to 500 to build a bigger business,
to be able to impact more people
and deliver more value to a marketplace
in exchange of money.
That's what a business does.
So, that's the first asset class: business.
Number two, the second type of asset
that rich people buy that the poor don't
is arts and antiques.
Now this is an asset class that I know very little about.
I cannot tell the difference between a $100 painting
versus $100,000 painting.
I have no clue.
This is an area that I am like a complete idiot.
My art collection would be my Hulk toys
and Iron Man collection.
Although my wife Jennie would argue
that is not an asset class.
Well, to me it is an asset class.
Number three, the third asset type
that the rich buy that the poor don't, it's automobiles.
Now a lot of people they buy automobiles
just for transportation.
But the rich sometimes they buy for collection
because they get pleasure driving them, owning them
or fixing them, repairing them, selling them.
Done properly, this could be
a very lucrative thing that you do,
but most the time, my friends I notice
that they just, because they have a passion for automobiles
or classic automobiles, they do it just for fun.
But because they collect them,
they buy rare automobiles
and when they sell them they do make a nice profit from it.
It does turn it into an asset class.
But for me, I just do it for fun.
Number four, real estate.
This is the most popular asset class
among the rich.
Most rich people they either make their money
through real estate or they park or hold their money
in real estate.
Now when it comes to real estate
there are so many different types of real estate.
You have residential or you have commercial.
Residential, I'm talking about condo or single family home.
Commercial real estate, I'm talking about malls,
hotels, right, offices, multi-family.
Two very different types of real estate.
And within real estate you have so many different types
of strategies.
Do you buy and hold?
Do you buy and flip?
Do you develop, right?
Do you do Airbnb?
Depends on what it is that you wanna do
and how much capital you have and where you wanna go.
Now why do so many rich people
have real estate or they park their money in real estate?
It's because the banks, the lending institutions,
they love real estate.
They will loan you money to buy real estate, right?
They like the security of real estate.
They feel like that's a hot asset,
it's an intangible asset that they like to lend money on.
And that's why a lot of rich people,
we either make their money in real estate
or we hold our money in real estate.
Number five, the fifth asset class
that rich people buy that the poor don't is paper assets.
I'm talking about bonds, mutual funds and stocks.
Now when it comes to assets,
sometimes we buy assets because it produces cash flow
or dividends.
In some cases we buy assets and we hopefully,
it will increase in value over time.
That's called appreciation.
So when it comes to stocks,
except it's like dividend stocks,
but stocks, mutual funds and bonds,
we are buying it at a certain price
and hopefully it'll go up later in the future.
We are betting, we are buying on the appreciation.
You see with paper assets
you can turn that into money very, very easily.
Let's say compare that to a piece of real estate.
In order convert a piece of real estate into money,
well maybe you need to list the property,
you need to sell, it takes time
or even if you wanna get a loan, get a mortgage,
a second mortgage from the bank, it takes time.
But with stocks, with mutual funds,
you can sell that and turn that into money
very, very easily.
Number six, the sixth asset class
that rich people buy that the poor don't
is intellectual properties.
I'm talking about patents, trademarks, brands, copyright.
Any other intellectual properties that you might have.
See, this is an asset class that I love.
I own a lot of intellectual properties.
The reason I like intellectual properties
it's because the ability, you can scale,
you can license your intellectual properties
to somebody else, but also the maintenance fee,
it's very, very little compared to other asset classes.
I can also duplicate and replicate what I do
to be able to serve way more people.
So intellectual properties,
Disney has a lot of intellectual properties,
Coca-Cola as a brand,
the brand itself, that's an intellectual property.
The brand itself is actually worth more
than the actual hard assets that Coca-Cola owns.
The brand Coca-Cola
is worth billions and billions of dollars.
Number seven, the last thing that rich people buy
that the poor don't is precious metals.
I'm talking about gold, silver, platinum.
This is a gift from my mentees from Australia.
24k gold, gold.
Now, gold is very, very important.
You notice when the currency of our dollars,
it depends on what countries you're coming from,
rich people, they like to have their money in gold
because throughout history you notice
that gold, it's the currency,
it is the asset class that is recession proof.
So it's a very, very important asset class
that in your portfolio you have to think about.
So precious metals.
Those are the seven things that rich people buy
that the poor don't.
I want to give you a bonus.
And this is a new asset class.
What am I talking about?
Asset number eight and that is audience.
That's right, audience.
You see attention is the new currency.
To be able to have an audience,
you see this through social media,
influencers who have audience,
that they're able to captivate other people's attention,
their audience's attention, it is worth money.
That's how they're able to generate income and profit
and money from what they do.
Attention is the new currency
because without attention
you would not be able to get customers.
And without customers, you won't have any sales.
No sales, no money, no profit.
It's that simple.
A lotta people, they neglect this asset class.
And I believe this is an asset class
that a lot of people, even rich people,
ignore and overlook.
This is an asset class that you can scale and expand
very, very quickly to have 10,000 people,
20,000 people, 50,000 people, 10,000 people
paying attention to your message, your cause,
what you are focusing on, what you wanna promote.
Even if you wanna promote charity,
your foundation, you need attention.
You need audience.
Money alone doesn't just get your attention.
Attention is attention.
Money alone is not enough.
But to be able to get attention
you can convert that into money.
You convert that into profit.
And it's this asset class that could grow and grow
and grow and there's no limit.
There's absolutely no limit.
By the way, if you wanna learn more
about how I do that, get a copy of my book, Unlock It,
published by Forbes Books.
Where I go much more in depth.
I talk about this currency, this new currency
that even successful CEOs don't know much about.
So go ahead, click link here
and get a copy of my book.